When ever shares are opening, we hear that a dematt account is must for that.
2007-02-05 19:48:56 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Demat refers to a dematerialised account.
Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.
So it is just like a bank account where actual money is replaced by shares.
You have to approach the DPs (remember, they are like bank branches), to open your demat account.
Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.
All these will show in your demat account.
So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.
As you buy and sell the shares, they are adjusted in your account.
Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.
You can visit the following link which will help you understand the topic better
http://in.rediff.com/getahead/2005/jan/31demat.htm
2007-02-05 20:38:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
De-Matt Account is for deal with Shares.If U wan't to buy a share first u 'll open this account for the purpose of avoid one man to buy a more number of share in one company using different name.DE-Matt account help to duplication of shareholder,easy to Share transfer,easy to get dividend etc
2007-02-06 05:24:39 · answer #2 · answered by Sha 1 · 0⤊ 0⤋
Go to a bank sitting on a matt and open an account. De-matt account
2007-02-06 03:57:57 · answer #3 · answered by toy2000in 2 · 0⤊ 0⤋
Demat is account which records the transaction of the shares. Without the opening of the account you are not eligible to trade in the share market. Hence who is interested to make and investment in the share market, he has to open this account.
2007-02-06 07:58:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Safety.
Guarantee.
Ease of Trading.
No monkey business.
Ease of doing business.
Held by firms that are controlled by the government. So, it is safe. It is the same as what is in the western world.
Take care.
KKP
2007-02-06 17:11:22 · answer #5 · answered by KKP_Investor 3 · 0⤊ 0⤋
De-materilization account helps banker as well as RBI to monitor black money.Idea is to trace investor and his money and source of money.It is exclusively for shares
2007-02-06 04:03:40 · answer #6 · answered by balkrishna c 4 · 0⤊ 0⤋
demat are electronic forms for share trading .this is use for the holding of shares in electronic form
2007-02-06 05:36:38 · answer #7 · answered by nitin b 1 · 0⤊ 0⤋